Status and Statutory Responsibility
These regulations are made under section 95 of the Local
Government (Scotland) Act 1973.
Section 95 states that every local authority shall make arrangements
for the proper administration of its financial affairs and shall secure
that the proper officer of the authority (termed the Section 95 Officer)
has responsibility for the administration of those affairs.
The Local Authority Accounts (Scotland) Regulations 1985 further
specify that the system of accounting and control and the form of the
accounts and supporting records are to be determined by the Section
95 Officer and that s/he is to ensure that accounting controls are
observed and the accounts and supporting records are kept up to
date. S/he is also responsible for publishing the Annual Accounts of
the Council and for making the arrangements for the statutory audit
required by s96 of the 1973 Act.
The City of Edinburgh Council has designated the Head of Finance as
the Section 95 Officer and therefore as the officer responsible for the
administration of the Council’s financial affairs in terms of section 95 of
the 1973 Act.
The Head of Finance serves as the Section 95 Officer for all of the
Council’s accounting arrangements, including those of the Lothian
Pension Funds. For the Lothian Pension Funds, however, this Section
95 responsibility has been delegated to the Funds’ Chief Finance
Officer in accordance with the arrangements set out in the addendum
to this document.
Following the establishment under the Public Bodies (Joint Working)
Act 2015 of an Edinburgh-area Health and Social Care Integration
Joint Board (EIJB), a separate set of financial regulations,
similar principles of sound governance, has been produced. Along
with the related financial directives, these regulations form the basis
upon which the Chief Financial Officer of the EIJB will discharge
equivalent proper officer responsibilities for the Board.
A more detailed set of Finance Rules, which prescribe the procedures
to be followed, has also been prepared. While these rules and other
relevant procedures and policies are not contained within these
financial regulations, they are issued under their authority and have
the same status as if they were included in the body of these
The Head of Finance will establish a programme of review for all
relevant documents and report the outcome of this review to the
Finance and Resources Committee on an annual basis. Executive
Directors and officers may also seek the issue, amendment,
clarification or supplementing of the regulations, finance rules or
associated procedures and policies for any areas of responsibility not
Any breach or non-compliance with these regulations or the
associated finance rules, procedures or policies issued under their
authority must be reported immediately to the Head of Finance, who
may consult others as s/he sees fit to determine the proper action.
The City of Edinburgh Council is responsible for ensuring that its
business is conducted in accordance with the law and appropriate
standards and that public money is safeguarded, properly accounted
for and used economically, efficiently, effectively, equitably and
ethically. The Council’s activities are furthermore guided by a set of
underlying principles and responsibilities fostering openness, integrity
In discharging these responsibilities, elected members and senior
officers are responsible for implementing effective arrangements for
governing the Council’s affairs and facilitating the effective exercising
of its functions including arrangements for managing risk.
a consequence of these responsibilities, the Council must regulate
the actions taken on its behalf that carry financial implications to
provide assurance of their propriety and consistency. It is furthermore
a requirement of these regulations that all financial transactions are
within the legal powers of the Council. These Financial Regulations
thus form a key element of the maintenance of a robust, clear and
accountable governance framework for the Council.
Responsibilities and Observance
The Chief Executive, as statutory Head of Paid Service, has authority
over all officers and is authorised to discharge any function or exercise
any power delegated to any officer under the Council’s Scheme of
Delegation. As the officer charged with overall responsibility for the
corporate management and operational functions of the Council, this
includes putting in place suitable arrangements to ensure an efficient
use of resources.
The Council’s Scheme of Delegation to Officers sets out the powers
delegated to officers pursuant to the Local Government (Scotland) Act
1973. As noted in paragraph 1.4, the Head of Finance has been
designated the Council’s Section 95 Officer responsible for the
administration of the Council’s financial affairs.
Role of the Head of Finance
The Head of Finance, as the Council’s Section 95 officer, is
responsible for advising the Council on all financial matters and for
monitoring and reporting on its financial performance and position.
Executive Directors are responsible for establishing sound
arrangements for planning, appraising, authorising and controlling
their operations in order to achieve continuous improvement,
economy, efficiency and effectiveness and meeting associated
financial targets. In doing so, they should also have due regard to
sustainability and equalities considerations.
Executive Directors are fully responsible and accountable for the
financial performance of their service area against the budget
allocated. They may incur revenue expenditure in furtherance of
agreed Council policies only to the extent that budgetary provision has
As part of ensuring the overall sustainability of the Council’s financial
planning and management arrangements, Executive Directors also
have a responsibility to review their respective budgets on an on-going
basis. This includes the active monitoring and management of service
pressures, delivery of approved savings and application of approved
service investment, particularly in cases where this investment is
targeted towards delivery of longer-term savings. The Head of
Finance, as the Section 95 officer, may request that Executive
Directors report to Council during the year on measures being taken to
ensure expenditure is contained within approved levels.
Executive Directors are further charged with the implementation of the
risk management policy and associated operational arrangements for
the control and mitigation of risk in their service areas and for ensuring
its effectiveness and review.
Paragraphs 3.2 and 3.3 of the Scheme of Delegation provide that:
(a) In the event that the Executive Director or Head of Service/Chief
Social Work Officer (where relevant) is unavailable, his/her
designated deputy or the head of the relevant service will have
delegated authority to take urgent decisions in the absence of the
(b) Executive Directors or the Head of Service/Chief Social Work
Officer (where relevant) may sub-delegate their delegated powers
to their deputy(ies) or head(s) of service or such other officer(s) in
their service area as they may consider appropriate.
With the exception of urgent decisions, which must be taken in
accordance with the Scheme of Delegation, authority to discharge
financial-related responsibilities must be delegated formally in writing.
This requirement applies to delegations of authority for financial
matters by all levels of management.
Executive Directors will formally report major financial issues to the
Chief Executive and Head of Finance, who will instruct appropriate
Internal Audit and Risk Management
The Head of Legal and Risk, through the Chief Internal Auditor, shall
arrange for a continuous internal audit function, to carry out an
examination of accounting, financial and other operations of the
Council, through undertaking a risk-based audit plan, complying with
the Public Sector Internal Audit Standards (PSIAS). The Chief Risk
Officer will also oversee the development and implementation of an
appropriate risk management policy and associated operational
It is the Chief Internal Auditor’s responsibility to put in place
appropriate arrangements to provide the Chief Executive, Executive
Directors, Head of Finance and elected members with an annual
assurance statement on compliance with Financial Regulations and
the Local Code of
Elected members’ responsibilities with regard to financial matters
reflect a number of facets, including:
(a) Setting the authority’s financial strategy, including budget-setting;
(b) Setting the authority’s strategic direction and overseeing
arrangements for the securing (and demonstration) of best value;
(c) Ensuring proper control is exercised over the authority’s
expenditure through scrutiny of periodic financial reports
comparing expenditure with the level of budgetary provision;
(d) Holding senior officers to account with regard to discharging all
relevant financial responsibilities within their control; and
(e) Encouraging the development of service targets/performance
measurements of a financial/non-financial nature to monitor
In this regard, the respective remits and key functions of Council, the
Governance, Risk and Best Value Committee, the Finance and
Resources Committee and other Executive Committees are set out in
the Council’s Committee Terms of Reference and Delegated
The external audit of the Council seeks to assess the extent to which
the stewardship of its financial affairs is subject to a regime of
accountability where monies are properly accounted for, safeguarded
and used economically, efficiently and effectively. The scope of this
audit is wider than that of the private sector equivalent, encompassing
coverage of the financial statements, regularity, propriety and best
value, including the securing of value for money. At present, this role
is undertaken on the Accounts Commission’s behalf by Scott-
Principles and Key Areas of the Control Framework
The Head of Finance will, in conjunction with the relevant Executive
Director, provide to all Executive Committees (including the Finance
and Resources Committee) and the Governance, Risk and Best Value
Committee regular monitoring reports, including reports on the final
outturn, together with any recommendations.
As noted at 1.3, The Local Authority Accounts (Scotland) Regulations
1985 require that the system of accounting and control, and the form
of the accounts and supporting records, should be defined by the
Head of Finance, who will ensure that the system is adhered to and
that the accounts and supporting records are kept up to date.
The Regulations also require the Head of Finance to submit the
Abstract of Accounts to the Council (or an appropriate Executive
Committee) and the Council’s external auditor by the prescribed dates.
The Head of Finance is responsible for ensuring that the accounts are
produced in compliance with existing legal and accounting
Executive Directors are required to provide all relevant information to
the Head of Finance in accordance with the instructions issued
As the officer who is statutorily responsible for all financial matters the
Head of Finance will implement procedural controls to ensure that:
(a) All expenditure is a valid charge;
(b) Income owed is collected;
(c) Assets are protected;
(d) Liabilities are accounted for; and
(e) Financial reports are prepared.
Risk Management and Internal Control
In accordance with the Head of Finance’s responsibility for financial
control and the Local Code of Corporate Governance’s requirements
for the effective management of risk, the Head of Finance has
approved financial rules to address these matters.
Systems and Procedures
18.104.22.168 The following will be carried out according to procedures and
instructions issued by the Head of Finance:
(a) Preparation of the statutory Abstract of Accounts; and
(b) Production of financial information in Council strategic plans,
including estimated revenue and capital expenditure.
22.214.171.124 All financial records, systems and any changes thereto are subject to
the written approval of the Head of Finance following consultation with
126.96.36.199 The following principles must be observed in the allocation of
(a) The duties of providing information regarding sums owed to or by
the Council, and calculating, checking and recording these sums
must be separated as completely as possible from the duty of
collecting or disbursing them;
(b) Officers responsible for examining and directing accounts of cash
transactions cannot be engaged in any of these transactions;
(c) All checking and authorisation undertaken by officers must be
evidenced by initials or signature, whichever is appropriate;
(d) All claims, returns or written submissions relating to grants and
financial data must be submitted to the Head of Finance for
approval prior to entering into any contracts under delegated
(e) Financial records, including contract documents for work done,
services and supplies, may only be disposed of in accordance
with arrangements approved by the Head of Finance.
188.8.131.52 Executive Directors are required to prepare revenue estimates in
accordance with guidance issued by the Head of Finance. Such
estimates will be supported by an integrated impact assessment,
where relevant. The Head of Finance will assist Executive Directors to
prepare financial information for inclusion in the revenue estimates.
The Council’s Strategy and Insight service will assist, as necessary,
Executive Directors to prepare integrated impact assessments.
Where applicable, consideration must also be given to the carbon,
climate change adaptation and sustainable development impacts of
budget proposals, on which relevant specialists can provide additional
advice. When the revenue estimates have been approved by Council,
they become the “Revenue Budget”.
184.108.40.206 The Head of Finance will prepare a financial context report for the
Finance and Resources Committee for the next and future years. The
Finance and Resources Committee will then remit the report to
Council and may make recommendations to Council on setting
Council Tax and rent for Council houses for the next financial year
and, where applicable, on indicative figures for future years.
220.127.116.11 After considering the report and any recommendations, Council shall
approve the allocation of resources, authorise the spending and set
the Council Tax, rent for Council houses and relevant fees and
charges for the following financial year at a meeting before 11th March
18.104.22.168 The Head of Finance will determine what constitutes revenue
expenditure and the relevant accounts in which transactions should be
22.214.171.124 Executive Directors are required to prepare capital estimates,
including carbon impact assessments, in accordance with guidance
issued by the Head of Finance. When the capital estimates have
been approved by Council, they become the “Capital Investment
126.96.36.199 The Head of Finance will determine what constitutes capital
expenditure and the relevant accounts in which transactions must be
188.8.131.52 Capital estimates must be submitted for scrutiny by the Finance and
Resources Committee, whose recommendations will be referred to the
Council for approval.
184.108.40.206 All Council and committee reports are required to include a statement
of the financial consequences of the proposals for current and future
years. The range of relevant considerations will vary from report to
report but a summary of the principal areas concerned
was reported to
the Governance, Risk and Best Value Committee in December 2012.
Guidance on completion of the financial implications section of
Committee reports is also provided within Section 7 of the Council’s
report writing and committee template information pack.
220.127.116.11 Where applicable, following approval at the Finance and Resources
Committee in January 2014, commentary should also be included to
cover (i) the associated revenue budget (i.e. loans charge) impact of
capital expenditure proposals and/or changes and (ii) a summary of
costs incurred by the Council in the procurement process for the
goods and/or services forming the subject of that report. Further
advice on requirements in each of these areas is available from the
Corporate Finance Senior Manager.
18.104.22.168 In the event that reports do not meet the above requirement, or
insufficient time is allowed for them to be properly considered, the
Head of Finance may request that the Executive Director or other
officer submitting the report withdraws it from the Council or committee
22.214.171.124 The Head of Finance, in conjunction with Executive Directors, is
required to submit detailed quarterly monitoring reports to the Finance
and Resources Committee, other relevant executive committee(s) and
the Governance, Risk and Best Value Committee. These reports will
compare actual expenditure to date with the budget position, project
the expenditure outturn for revenue and capital expenditure, provide
an overview of progress in delivering approved savings and managing
service risks and pressures and report key service issues including –
where relevant – the equality and rights impact of any changes. The
Head of Finance will specify the format of such monitoring reports.
126.96.36.199 The Head of Finance may give such direction to Executive Directors
as to measures to be taken in relation to the revenue budget or the
capital investment programme during the remainder of the financial
year as may be necessary or advisable in the circumstances
188.8.131.52 The Head of Finance may also make recommendations to Council as
may be necessary or advisable in the circumstances prevailing.
Spending, Supplementary Estimates and Transferring Funds
184.108.40.206 No Executive Director or officer to whom budgetary responsibilities
have been delegated may allow spending, whether revenue or capital,
to exceed budget.
220.127.116.11 No Executive Director or officer to whom budgetary responsibilities
have been delegated may incur any expenditure unless:
(a) It is a revenue expense which has been approved as part of the
revenue budget under 4.4.2 of these Financial Regulations; or
(b) It is a capital expense which has been approved as part of the
Capital Investment Programme under 4.4.3 of these Financial
Regulations, or any separate Act of Council and, where necessary,
a tender or quotation has been received under Contracts Standing
(c) The expense has been authorised under the remaining sub-
paragraphs of paragraph 4.4.5 of the Financial Regulations.
18.104.22.168 The Finance and Resources Committee may transfer money within
the revenue budget to either existing or new projects, but:
(a) If this will change approved Council policy, a report must be
submitted to Council for approval before the transfer can be
(b) If the transfer will affect future years’ revenue budgets, a report
detailing the effect on future budgets must be submitted to Council
for approval before the transfer can be actioned.
22.214.171.124 The Finance and Resources Committee may transfer money within
the Capital Investment Programme to either new or existing projects
as may be necessary or advisable in the circumstances prevailing,
(a) If this will change approved Council policy, a report must be
submitted to Council for approval before the transfer can be
(b) If the transfer will affect future years’ capital or revenue budgets, a
report detailing the effect on future budgets must be submitted to
Council for approval before the transfer can be actioned;
(c) Where capital grant is provided for a specific project, no transfer to
alternative projects is permitted without the consent of the Scottish
Government or other external grant provider.
In the case of both revenue and capital transfers, any equality and
rights impacts of the proposed changes must also be considered.
126.96.36.199 The Head of Finance may, from time to time, issue detailed
instructions on the transfer of monies within and / or between service
area revenue budgets.
188.8.131.52 If an Executive Director:
(a) Proposes to incur revenue or capital spending that is not included
in the revenue budget or capital investment programme approved
by Council or to reduce income provided in that way; and
(b) Does not propose to pay for the spending by reallocating existing
the Executive Director must seek a supplementary estimate.
184.108.40.206 S/he must report to the Finance and Resources Committee with an
assessment of the financial spending consequences for the current
and future years and, where relevant, the equality and rights impact of
the changes. In the case of revenue expenditure, this appraisal
should include identification of the budget head(s) to be reduced in
future years. If the Finance and Resources Committee agrees, it will
submit a recommendation to Council.
220.127.116.11 The Head of Finance must agree before a proposal for transfer or
supplementary estimate is reported to the Finance and Resources
18.104.22.168 Executive Directors, in consultation with the Convener of the
appropriate executive committee for the service, may submit a request
for expenditure of an emergency nature. In such circumstances, the
expenditure concerned may be incurred on the authorisation of the
Head of Finance, in consultation with the Convener of the Finance and
Resources Committee. The Executive Director requesting the
expenditure shall arrange for the matter to be reported to the Finance
and Resources Committee.
22.214.171.124 Other than contractual liabilities, Executive Directors are not permitted
to incur revenue expenditure until the relevant financial year has
126.96.36.199 Executive Directors are required to provide all relevant information to
the Head of Finance in accordance with the instructions issued
annually by him/her.
188.8.131.52 The Head of Finance will report the Council’s final expenditure outturn
with recommendations for appropriations to the Finance and
184.108.40.206 The Chief Internal Auditor will make appropriate arrangements to
review, appraise and report on:
(a) The adequacy of internal control as an indication of probity and
contribution to the economic, efficient and effective use of
(b) Compliance with approved policies, plans and procedures,
including those with a significant impact on, or strong relevance to,
equality and rights;
(c) The extent to which assets are accounted for and safeguarded
from losses arising from theft, fraud, waste, inefficient
administration and poor value for money;
(d) The suitability and reliability of management data;
(e) Service managers’ effectiveness in achieving value for money.
220.127.116.11 The Chief Internal Auditor has authority, subject to necessary, prior
(a) Enter all Council premises or land at any reasonable time and
have access to all records, documents and correspondence
relating to financial or other matters. This access extends to
Council Officers and elected members as necessary;
(b) Require and receive such explanations as are necessary
concerning any matter under examination; and
(c) Require employees to produce cash, stores or other Council
property under their control.
18.104.22.168 If elected members or staff discover or suspect any fraud or
irregularity that affects the Council, they must immediately inform the
Chief Internal Auditor who will arrange for an investigation to be
conducted if appropriate. In so doing, attention is drawn to the
provisions and arrangements included in the Council’s Public Interest
Disclosure (Whistleblowing), Anti-Fraud, Anti-Bribery and Anti-Money
22.214.171.124 The Head of Legal and Risk, in consultation with the Chief Risk
Officer, is responsible for preparing the risk management policy and
associated operational arrangements.
126.96.36.199 Executive Directors are responsible for establishing effective internal
controls to mitigate risk and documenting these controls and their
application formally. In accordance with the risk management
strategy, all officers have a role in the identification of risks as they
affect their service area.
188.8.131.52 In cases of material proposed change to systems of internal control,
advice should be sought from the Chief Internal Auditor. It is the
responsibility of relevant service managers, however, to implement
resulting changes and monitor their effectiveness.
184.108.40.206 The collection of all money owed to the Council is the responsibility of
the Head of Finance except:
(a) The collection of monies at service locations (i.e. where payment
or counter services are offered) and the accounting thereof to the
Head of Finance is the responsibility of the appropriate Executive
(b) The Executive Director of Place is responsible for the collection of
rents for Council housing and the collection of parking fines and
accounting for them to the Head of Finance.
220.127.116.11 The Head of Finance must be notified promptly of all money due and
of contracts, leases, agreements or other arrangements, that involve
payments to the Council.
18.104.22.168 Executive Directors will ensure the prompt rendering of accounts in
connection with work done, goods supplied or services rendered and
will furnish the Head of Finance with the information required to
identify income due. The Head of Finance will approve the manner in
which accounts for income receivable must be prepared. Additional
guidance in this area is provided within the Council’s Corporate Debt
22.214.171.124 Arrangements for payment of accounts by instalment are at the
discretion of the Head of Finance, in consultation with the relevant
Executive Director where appropriate.
126.96.36.199 Arrangements for the billing and recovery of all sums due should be
carried out in accordance with the provisions contained within the
Council’s Corporate Debt Policy.
188.8.131.52 Invoices issued by the Council must not be amended to correct errors.
Services must issue a replacement invoice if errors are identified,
whereupon the erroneous invoice should be cancelled.
Receipt of Income
184.108.40.206 All money received by a Council officer must be paid in without delay
or in accordance with directions issued by the Head of Finance.
220.127.116.11 Where invoices have not been issued for sums owed to the Council,
alternative arrangements for collection are subject to the Head of
Finance’s written approval.
18.104.22.168 The Head of Finance will specify in writing procedures for recording
income, lodging income with the bank, resolving banking
discrepancies, security and insurance, cash transfers, personal
cheques and the supply of receipts and tickets for use by service
22.214.171.124 The Executive Director of Resources, Head of Customer Services and
Information Technology, Customer – Senior Manager and Head of
Finance are authorised to sign certificates and petitions to the Sheriff
Court for summary warrant applications.
4.4.12 Salaries and Wages
126.96.36.199 Employees may be appointed only in accordance with the procedures
approved by the Council, the establishment, grades and rates of pay.
Appropriate equality monitoring and internal audit arrangements will
be put in place to ensure compliance.
188.8.131.52 Salaries and wages must be processed in accordance with
procedures and instructions issued by the Head of Human Resources
from time to time. Managers are also responsible for confirming the
employment status of self-employed individuals and sole traders prior
to engagement by means of completion of the HMRC-provided online
assessment tool and liaising thereafter as appropriate with the Payroll
and Accounts Payable functions.
184.108.40.206 The payment of salaries, wages, compensations and other
emoluments to employees or pension entitlements to former
employees will be made by the Head of Human Resources, who is
also responsible for transmitting pension contributions to the Lothian
Pension Fund and the Scottish Public Pensions Agency and tax,
National Insurance and apprenticeship levy contributions to HM
Revenue and Customs.
220.127.116.11 Executive Directors must provide the Head of Finance and/or Head of
Human Resources with the information required to complete Council
and statutory returns.
4.4.13 Allowances and Loan Schemes
18.104.22.168 The Head of HR is responsible for paying allowances, reimbursing
expenses and administering loan schemes.
22.214.171.124 Executive Directors are required to ensure that:
(a) Claims and applications are submitted in accordance with
conditions of service, Council policies and statutory provisions,
together with relevant supporting information such as receipts;
(b) Claims and applications are submitted on the appropriate form
and certified by an authorised officer;
(c) Officers authorised to sign claims and application forms on their
behalf are notified to the Head of Finance;
(d) Information required to complete Council and statutory returns is
provided to the Head of Finance.
126.96.36.199 The Head of Finance is responsible for administering the Scheme of
Members’ Allowances in accordance with relevant statutory provisions
and the payment of expenses. A report on members’ allowances must
be presented to the Governance, Risk and Best Value Committee
annually and is currently discharged by means of the Remuneration
Report contained within the Council’s Annual Accounts.
188.8.131.52 The Head of Finance will:
(a) Prepare and maintain an insurance strategy to provide cost-
(b) Negotiate claims with insurers, in consultation with relevant
(c) Report annually to the Governance, Risk and Best Value
Committee on the strategy’s operation and effectiveness.
184.108.40.206 Executive Directors must notify the Head of Finance promptly of all
new risks, properties, vehicles, plant, equipment, etc. that require to
be insured, in addition to any alterations and changes in activities and
procedures that may affect existing insurance arrangements.
220.127.116.11 Executive Directors must notify the Head of Finance of all major
capital and revenue projects at an early stage if insurance cover or
specialised insurance advice is required.
18.104.22.168 Executive Directors must notify the Head of Finance in writing of any
loss, liability, damage or other event likely to lead to a claim
immediately they become aware of it and should inform the police
22.214.171.124 In order to comply with the Insurance Act 2015, Executive Directors
must advise every material circumstance that the Council ‘knows’ or
‘ought to know’ or provide sufficient information to put a prudent
insurer on notice that it needs to make further enquiries for the
purpose of revealing those material circumstances.
126.96.36.199 Executive Directors should not:
(a) Make any admission of liability;
(b) Take any action which may be construed as an admission of
(c) Waive any rights of recovery.
188.8.131.52 Executive Directors must consult the Head of Finance and Head of
Legal and Risk regarding the terms of any indemnity which the Council
is requested to provide.
184.108.40.206 Executive Directors must take due account of recommendations made
by the Council’s insurers.
4.4.15 lmprest Accounts
220.127.116.11 Where appropriate, the Head of Finance will provide cash advances to
officers to defray petty cash and other expenses. Such advances will
be accounted for using the imprest system.
4.4.16 Custody and Security of Assets
18.104.22.168 Each Executive Director is responsible for maintaining appropriate
security at all times for data/information, buildings, stores, furniture,
equipment, cash and other property, including that owned by third
22.214.171.124 The Scheme of Delegation to Officers – Appendix 1 - General
Delegation to Executive Directors provides delegated authority to write
off or dispose of any stores, plant, furniture, equipment or other
tangible or monetary asset not falling with the scope of the Corporate
Debt Policy in accordance with these Financial Regulations provided
(a) The stores, plant, furniture, equipment or other tangible asset,
have become unfit for use and unsaleable or in the case of
relevant monetary assets, all reasonable steps to achieve recovery
have been exhausted; and
(b) The decision is made in consultation with theExecutive Director of
126.96.36.199 Council assets may not be removed, other than for Council purposes,
unless specific instructions have been issued by an Executive
188.8.131.52 Executive Directors are responsible for the care, custody and
stocktaking of all stocks under their control and must act in
accordance with guidelines issued by the Head of Finance.
184.108.40.206 Each Executive Director must agree maximum limits for cash holdings
with the Head of Finance for insurance purposes. These may not be
exceeded without the permission of the Head of Finance.
220.127.116.11 All heritable securities which are the Council’s property, are in its
name or in the name of its nominee, and the title deeds of all Council
property must be stored securely by the Head of Finance.
18.104.22.168 All heritable securities that comprise the Common Good Fund must be
stored securely by the Head of Finance.
Gifts, Hospitality and Conduct
22.214.171.124 A register of items gifted or bequeathed to the Council will be
maintained by the Head of Finance. Items of considerable value when
not otherwise taken on charge for Council or service-specific purposes
should be lodged with the Head of Finance for safe keeping and
126.96.36.199 Elected members and officials must comply with the Local
Government (Scotland) Act 1973 Section 68 and all relevant codes of
conduct for local government personnel.
188.8.131.52 The Chief Executive has delegated authority to approve expenditure
on civic hospitality of up to £10,000 subject to consultation with the
Lord Provost or relevant Convener if provided on behalf of a particular
Committee. Where total event expenditure exceeds £10,000 or is
over and above the budgeted level, approval from the Finance and
Resources Committee is required.
184.108.40.206 The Head of Finance will make arrangements for opening and
operating bank accounts and using banking services. The Head of
Finance is responsible for negotiating banking terms. No new bank
accounts should be opened without the authorisation of the Principal
Treasury and Banking Manager. Personal bank accounts must never
be used in respect of Council transactions or funding.
220.127.116.11 All cheque forms, excluding those required for authorised imprest
accounts may be printed only with the authority of the Head of
Finance, who will make arrangements for their safe custody.
18.104.22.168 Cheques drawn on the main bank accounts must bear the facsimile
signature of the Head of Finance (or other nominated officer) or be
signed by the Head of Finance or other officer who holds an
authorised post designated by him/her.
22.214.171.124 The Head of Finance will make appropriate arrangements, including
determination of agreed authorisation limits, for the signature of other
financial documents on behalf of the Council.
4.4.19 Treasury Management
126.96.36.199 The Council has adopted CIPFA’s “Code for Treasury Management in
the Public Services” and “Prudential Code for Capital Finance in Local
Authorities”. The Head of Finance is responsible for preparing and
maintaining the Treasury Policy Statement and treasury management
activities must be carried out in accordance with the Statement.
Amendments must be considered and approved by Council.
188.8.131.52 An annual Treasury Strategy must be prepared. To this end, the Head
of Finance will prepare separate annual reports to propose the
following year's treasury strategy and report on the previous year's
management performance. These documents will be subject to
approval by Council and onward scrutiny by the Governance, Risk and
Best Value Committee to monitor the strategy’s implementation and
effectiveness. The performance report will be submitted as soon as
possible after the end of the financial year.
184.108.40.206 All treasury-related decisions are delegated to the Head of Finance
who must act in accordance with the Code and Policy Statement.
220.127.116.11 All money in the Council's custody will be aggregated for treasury
management purposes and controlled by the Head of Finance.
18.104.22.168 Where the acquisition or creation of an asset by leasing is proposed,
the financial implications of the leasing agreement must be approved
by the Head of Finance.
22.214.171.124 The Head of Finance may undertake any action that may reasonably
be deemed permissible investment business but must seek
appropriate advice where necessary in relation to educational
endowments and any other Council or trust funds.
126.96.36.199 The Head of Finance is responsible for the safe custody of share
certificates or other documents relating to the investment of Council or
4.4.21 Payment of Accounts
188.8.131.52 Arrangements for processing payments must comply with procedures
established by the Head of Finance, a summary of which is included in
the Finance Rules.
4.4.22 Grant Payments to Third Parties
184.108.40.206 Executive Directors are responsible for ensuring that grant awards are
consistent with the Council's priorities and are subject to its standard
conditions of funding as determined by the Head of Finance.
220.127.116.11 Arrangements for processing grant payments must comply with
procedures established by the Head of Finance as set out in the
Finance Rules. Other than in a limited number of specific cases
where authority is delegated to Executive Directors, all payments are
subject to annual consideration and approval by the relevant
18.104.22.168 Arrangements for procurement/purchasing, including the use of
purchasing cards, must comply with procedures established by the
Head of Finance as summarised in the Finance Rules.
22.214.171.124 Executive Directors are responsible for ensuring that purchasing
activity carried out on their behalf is undertaken in accordance with the
guidance contained in the Procurement Handbook and associated
4.4.24 Value Added Tax
126.96.36.199 Executive Directors are responsible for identifying and accounting for
input and output tax as it relates to their service area. Queries and
specific problems should be referred to the Head of Finance, who is
responsible for issuing guidance on the application of VAT rules.
4.4.25 Cyber Security
188.8.131.52 The Head of Customer Services and Information Technology is
responsible for preparing and maintaining the Council’s policy on ICT
security, as well as appropriate guidance on usage and security.
184.108.40.206 Executive Directors are responsible for applying the security policy
220.127.116.11 The Council is registered under the Data Protection Act. Executive
Directors are responsible for ensuring that the provisions regulating
computer systems’ security are strictly observed. Executive Directors
must liaise with the Head of Customer Services and Information
Technology to ensure adequate security on a continuing basis.
4.4.26 Other Significant Documents
18.104.22.168 Financial Regulations should be read in conjunction with the
constitutional documents of the Council and all Council Policies (as
such term is defined in the Scheme of Delegation to Officers) including
Procedural Standing Orders for Council and Committee Meetings;
Committee Terms of Reference and Delegated Functions;
Scheme of Delegation to Officers;
Contracts Standing Orders;
Code of Conduct on the Use of Electronic Communications;
A Framework to Advance Equality and Rights 2012 to 2017 and
ADDENDUM: FINANCIAL REGULATIONS – LOTHIAN PENSION FUNDS
In respect of all pension funds administered by the City of Edinburgh
Council, the Section 95 responsibility has been delegated to the Chief
Finance Officer, Lothian Pension Fund. This encompasses
responsibility for all accounting records and financial administration of the
pension funds, as aligned to the remit of the Pensions Committee and
Pensions Audit Sub-Committee.
The responsibilities of the Head of Finance, as detailed in these Finance
Regulations, will therefore apply to the Chief Finance Officer, Lothian
Pension Fund, only to the extent that these are pertinent to the
governance of the pension funds. This shall include making suitable
arrangements for the safe custody of the investments of the pension
funds, share certificates or other documents relating to the investment of
pension funds. Financial reporting for the pension funds will be
considered by the Pensions Committee, and the Pensions Audit Sub-
Committee as appropriate.